Materials Conversion Costs b.) Compute the unit cost. (Round unit costs to 2 dec
ID: 2450842 • Letter: M
Question
Materials
Conversion Costs
b.)
Compute the unit cost. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials
Conversion Costs
c.) Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)
Costs accounted for:
Transferred out
Work in process, September 30
Materials
Conversion costs
Total costs $
Santana Mortgage Company uses a process cost system to accumulate costs in its Application Department. When an application is completed, it is forwarded to the Loan Department for final processing. The following processing and cost data pertain to September.1. Applications in process on September 1, 190 2. Applications started in September, 950 3. Completed applications during September, 660 4. Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs. Beginning WIP: Direct materials $1,240 Conversion costs 4,820 September costs: Direct materials $4,791 Direct labor 12,350 Overhead 7,668
Materials are the forms used in the application process, and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process.
Explanation / Answer
Determine the equivalent units of service (production) for materials and conversion costs.
Compute the unit cost
Particulare Direct materials Conversion costs Unit Completed and transferred 660 660 Ending WIP 480 288 Total Equivalent units 1140 948